Analysis of the Impact of Digital Marketing, Brand Image, and Mobile Banking Services on Customer Loyalty (CENDEKIA Jurnal Ilmu Pengetahuan)

Summary

• The research analyzes the effects of digital marketing, brand image, and mobile banking service quality on customer loyalty using a sample of 300 active banking customers in Indonesia.p.1
• Data analysis was conducted using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) via SmartPLS with 5000 bootstrapping subsamples at a 5% significance level.p.3
• Measurement model evaluation demonstrated high reliability and validity, with indicator outer loadings ranging from 0.742 to 0.891 and AVE values between 0.585 and 0.692.p.4
• The structural model accounts for 68.4% of the variance in customer loyalty (R2 = 0.684) and 23.0% of the variance in brand image (R2 = 0.230).p.4

Key insights

1. Mobile banking service quality is the dominant direct predictor of customer loyalty with a path coefficient of 0.520 (p = 0.000).p.5
2. Brand image acts as a significant mediating variable between digital marketing and customer loyalty with an indirect effect coefficient of 0.187.p.5
3. The combined model of digital marketing, brand image, and mobile banking quality explains 68.4% of customer loyalty variance, leaving 31.6% to external factors.p.5
4. Sample selection criteria mandated participants to be at least 17 years old with active transaction history on mobile banking applications for at least 6 months.p.3